NextMark

Google bets on mobile with $750 mm AdMob acquisition

Google's $750 mm acquisition of AdMob is their 3rd biggest behind Doubleclick and YouTube. AdMob, the mobile ad platform that has been especially popular on the iPhone, has certainly done a lot of things right in its first 3 years of operation with revenue approaching $100 million. Google thinks this can be a lot bigger:

"Despite the tremendous growth in mobile usage and the substantial investment by many businesses in the space, the mobile web is still in its early stages. We believe that great mobile advertising products can encourage even more growth in the mobile ecosystem. That's what has us excited about this deal."

The trend is clear. This deal shouts the importance of the mobile advertising channel. What can we learn from this? What should we do to capitalize on this trend?

NPR cites NextMark as the Google of Mailing Lists

Last night, NextMark was featured in part 1 of a story on data privacy by Martin Kaste on National Public Radio's All Things Considered program. NextMark's mailing list search tool was cited as the "Google for mailing lists" which is exactly what it is. It makes it easy to search virtually every mailing list available, with more than 60,000 mailing lists from 1,400 sources in the index.

Unfortunately, they used a search on "bladder" as their example. While I am sure there are certain pharmaceutical applications for this and the people with these problems would like to learn about solutions, it is an unusual example. I wish they picked a better example, but I can understand that it makes for a more interesting story (most mainstream examples would probably be considered boring by radio standards).

Mr. Kaste did a nice job in presenting a balanced story. He pointed out that:

"Reputable firms aren't just selling this information to anyone [...] you can look at the [NextMark] Web site and see that it's for sale, but they still want to know more about you before they sell it to you."

Actually, in NextMark's world, the technical term is "rent" not "sell" because the buyer does not take possession of the personal data and it can only be used once through a trusted third party service bureau that keeps the name and address data anonymous. Mr. Kaste also presented the positive effects of sharing information through a quote by an expert on best practices in marketing ;-):

"I think when it's done right, just as with a good friend, sharing personal information makes for a much relevant, meaningful relationship and without that, you're really just a number."

This is the crux of the issue.

The story continues with an interesting study by Italian economist Alessandro Acquisti that shows that people are more willing to share highly personal information on "cheesy" websites than on professional sites with well-stated privacy policies. Seems backwards, doesn't it?

Part 1 concludes with an interview with Chris Hoofnagle of the UC Berkeley School of Law who says, "if consumers knew the extent to which this information was being collected and repackaged, there would be riots in the streets." Hoofnagle is correct that there are cases where we should be concerned about the methods of gathering and trading of personal information. It's also important to note that if people knew about the controls that NextMark's clients employ to ensure privacy, then they would feel much better about sharing information and the relevance it brings to their mailbox (the opposite of "junk mail" and "spam"). Just like in any industry, there are good guys and bad guys. NextMark enables the good guys.

It will be interesting to hear if these controls are discussed in one of NPR's remaining episodes. If they are not, then I will follow up with another blog post on the topic.

In the meantime, you can listen to part 1 of Online Data Presents a Privacy Minefield on NPR's website or here:

Please add your reactions and comments below.

Marketfish aims to put List Brokers and List Managers out of business

Xconomy Seattle today reported on Marketfish, a new startup that plans to put list brokers and list managers out of business. According to the article,

Previous companies like NextMark and min (Marketing Information Network) tried various approaches in the pre-Google days, [Marketfish CEO Dave] Scott says, but they largely failed to solve the list marketing problem. "They wanted to play nice with all the middlemen. We’re going to cut them out," he says. "It’s a bold strategy."

Interestingly, Marketfish hopes to sell its services to advertising agencies... aren't agencies middlemen, too? Won't the agencies will be wise enough to predict the future of this relationship?

Marketfish reports to have recently closed a seed round with Alliance of Angels. I have to wonder if Marketfish disclosed two other companies with the same disintermediation strategy, Adventa and Alistia, who burned through tens of millions of investor dollars before going bankrupt without any success. Or the fact that using a list broker is by choice?

Hmmm...

For the record, NextMark has done quite well with a "play nice" strategy and has amassed the most comprehensive and up-to-date index of mailing lists available today with more than 100,000 data cards sourced in cooperation with 1,400 mailing list suppliers. We recognize our position as a marketplace technology provider and respect the roles that list brokers, list managers, agencies, service bureaus, and other suppliers play in the ecosystem. These relationships are one of NextMark's biggest assets. Our suite of products and services enable suppliers to work together more cohesively to achieve the mutual goal of helping marketers to reach their market.

As Marketfish observes, there are certainly huge inefficiencies in the marketplace. But it's important to recognize the experience and expertise that would be lost by "cutting out the middlemen." NextMark is streamlining the marketplace while preserving - and enhancing - the value of these critical roles.

How Banks, Marketers Aid Scams... and how they prevent it

Today's Wall Street Journal includes a story "How Banks, Marketers Aid Scams" that tells how common business practices may help scammers. Although the story mentions some of the controls in the mailing list business, it fails to mention most of them.

The common public perception of mailing lists is that personal information is being freely traded without any controls. Nothing could be further from the truth. In fact, you'd be suprised how many controls are in place to prevent inappropriate use of mailing lists. Here are a few:

1. Mailing lists have well-established opt-out or opt-in policies to give individuals control of their inclusion on a list
2. Lists are typically "rented" or "exchanged" for 1-time use (versus purchased for unlimited use) - this prevents overuse
3. List rentals require list owner approval as part of a formal clearance process - this prevents mis-use
4. Getting approval requires samples of your mail piece or telemarketing script - this prevents inappropriate use of the list
5. Professional List Brokers and List Managers typically act as intermediaries on transactions and will stop fraud in its tracks to protect their clients and their livelihood. Many maintain black lists of unethical mailers to aid in this process.
6. List rentals require a formal list rental agreement (LRA) that restricts use of the mailing list to the purpose set forth. This contract prevents misunderstandings and adds formal accountability to the process.
7. List rentals are "anonymous" - the buyer never takes possession of the list. Instead, a trusted 3rd party service bureau handles the data - this prevents stealing of mailing lists
8. Lists are seeded to ensure that the use of the mailing list complies with the agreement. Mailboxes are set up to receive the mailings/emails/calls and these are tracked - this prevents mis-use.
9. Members of the Direct Marketing Association abide by a Privacy Promise and Code of Ethics.

NextMark's technology enables these controls and more that give consumers better protection. At the same time, NextMark enables organizations to reach their market directly with highly relevant communications (by weeding out people who consider their communication "junk mail" or "spam").

Of course, list owners aren't required to use NextMark, join the Direct Marketing Association, or go through the list broker/list manager channel to sell their list. But the ethical list owners, such as The Wall Street Journal itself, and their list managers will follow this protocol to prevent mis-use of their data and to protect consumers.

More attention needs to be paid to unscrupulous list owners and marketers who don't follow the rules.

The billionth iPhone app downloaded

The trend towards mobile computing is staggering, led by Apple. Their AppStore recorded its billionth application download two months ago (April 2009).  Those applications were downloaded to the 40 million Apple iPhone devices currently on the market.

Even more amazing is the fact there are 50,000 applications available through the AppStore... in nine short months! Software developers are clearly on board with this. Sure, there's a bunch of useless apps, like fart apps. But serious developers are creating meaningful applications, too, like this health monitor:

The Palm Pre was also just launched and has received early positive reviews. Another excellent application platform. Then there's Google Android and a whole bunch of other challengers.

Who will "win?" That's anyone's guess.

If you are not already looking at mobile computing, now is the time to start. Otherwise, it's clear who will lose.

Sir, we're not the taco stand

This "The Vendor Client relationship - in real world situations" video gave me a good laugh: It shows the "no budget" "pay you later" abuse some vendors endure. Of course, none of our customers use these tactics. Right?

(Thanks to Jim Gilbert for posting this on his blog)

Is Direct Mail Doomed?

MediaPost just published a story entitled "Direct Mail Doomed, Long Live Email" which covers research by Borrell Associates entitled "Direct Mail Falls, E-mail Soars (May '09)". As you might guess from the title, the story spells the demise of direct mail:

After making quick work of print newspapers, and the Yellow Pages industry, "The kudzu-like creep of the Internet is about to claim its third analog victim," warns a new report from research firm Borrell Associates. The victim? "The largest and least-read of all print media: Direct mail."

"Direct mail has begun spiraling into what we believe is a precipitous decline from which it will never fully recover," Borrell predicts. More specifically, it is projecting a 39% decline for direct mail over the next five years, from $49.7 billion in annual ad spending in 2008 to $29.8 billion by the end of 2013.

If Borrell is correct, direct mail will fall from the premiere placeholder for ad revenue to the fourth -- behind the Web, broadcast TV, and newspapers.

Is direct mail really doomed?

The financial situation of the USPS is certainly a recipe for disaster: they seem to be in a "death spiral" where their cost burdens drive up postage which drives down direct mail ROI which reduces revenue and profit which drives postage higher (repeat...). Electronic bill presentment and bill paying is taking a big chunk out of the USPS pocketbook. Credit card mailers have pulled back significantly because of their own problems. The USPS' list of financial problems is long and getting longer every day.

Cross-selling, up-selling, and retention programs (i.e. marketing to current customers) can be very effective through email if done right. This reduces demand for direct mail.

However, prospecting for new customers through email often fails miserably (particularly when the wrong mailing lists are chosen). This is where direct mail still shines despite the all the economic challenges of getting direct mail to the mail box. Response rates, average order, and ROI are higher with direct mail prospecting programs. With good mailing lists, results are even better.

What do you think? Can prospecting save direct mail? Or will spiraling postage and other cost increases eventually make direct mail inviable?

Your response is required by law

Need a surefire way to boost your direct marketing response rates through the roof? Take a page out of the U.S. Census Bureau's playbook and make it a crime to disregard your mailing.

Here you see their envelope creative clearly stating "YOUR RESPONSE IS REQUIRED BY LAW":

Inside the envelope you find an 8-page survey with 82 questions such as, "what was the total amount of capital used to start or acquire this business?"

What happens if you don't respond? According to Title 13 of the United States Code, Chapter 7, Sub-chapter II, Section 224:

"Whoever, being the owner, official, agent, person in charge, or assistant to the person in charge, of any company, business, institution, establishment, religious body, or organization of any nature whatsoever, neglects or refuses, when requested by the Secretary or other authorized officer or employee of the Department of Commerce or bureau or agency thereof, to answer completely and correctly to the best of his knowledge all questions relating to his company, business, institution, establishment, religious body, or other organization, or to records or statistics in his official custody, contained on any census or other schedule or questionnaire prepared and submitted to him under the authority of this title, shall be fined not more than $500; and if he willfully gives a false answer to any such question, he shall be fined not more than $10,000."

So, if I understand this correctly, it will cost you $500 if you don't respond and $10,000 if you lie.

That's certainly a compelling "value proposition." I wish I could use that for our marketing programs ;-)!

Cisco Systems Comments on Data Cards

BtoB published a story today titled "It’s in the cards: Tip-top list data cards are more than just a formality". The story reflected on comments from a leading direct marketers from firms like Cisco Systems, Merkle, and two others. Here's what they had to say about the value of data cards and the importance of data card quality:

"The idea of a data card is really important in that it gives marketers a map of what their data source looks like and, as a result, what they can expect by using that data source,” said Theresa Kushner, director of customer intelligence at Cisco Systems. “That’s essential to a direct marketer.”.

"If a list isn’t represented well on the data card, or it’s not what we thought it is, we’re wasting our time; and I don’t have time to waste,” said Lisa Donnelly, senior director-content strategy with direct marketing agency Merkle Inc. “I need that card to be accurate, concise and make sense when I look at it the first time,” she said.

NextMark publishes the top list managers for data card quality report at the beginning of each quarter. This is just one measure of a list manager's commitment to providing exceptional service. Among many other things to consider are industry experience, secondary market knowledge, multi-channel marketing expertise, list rental forecasting capabilities, list price negotiations, and responsiveness to count requests.

Social Media Cheat Sheet

This cheat sheet has been revised. Please click Social Media Cheat Sheet for the updated version.

Are you spending too much time trying to figure out how to leverage social media for your business? Maybe you are just waiting to see some quantitative results before diving in. You know there's value in doing it, but the perceived ROI doesn't look very good when senior management's time is at stake.

This blog will help you get organized before you dive in. Just save this page to your favorite places for quick and easy access to the top services. This is not intended to be a comprehensive list since there are hundreds of social networking sites that may not be as effective for business. It is also important to note that the services listed below are most recognized in U.S. and may not be the top choices internationally. I hope you find this resource helpful.     

________________________________________________________________________

Aggregation Tools: FriendFeed, Lifestream.fm, Lijit, Ping.fm, Socializr, Socialthing!

Blogs: Blogger, Typepad, Wordpress

Bookmarks:  Delicious, Digg, Livejournal, Mixx, Newsvine, Propeller, Reddit, StumbleUpon, Technorati, Yahoo! Buzz

Free Business Listings:  BizHWY, Cardboard, Crunchbase, Jigsaw, MerchantCircle, NextMark, Tradvibes, and many more out there!

Post Documents:  Google Docs, Scribd

Post PowerPoint Presentations:  AuthorSTREAM, Google Docs, Myplick, Slideshare

Post Videos:  Vimeo, YouTube

Social Networks:  Crowdvine, Facebook, LinkedIn, Plaxo

Twitter Tools:  MyTweeple, TweetDeck, TweetLater, Twibes, Twitter

URL Shorteners:  bit.ly, budURL, Snurl, TinyURL, tr.im, Twurl

Wikis:  Pbwiki, Wetpaint, Wikipedia

Be careful which URL shortener you use as it may affect your future search rankings.

Your feedback is welcome, and encouraged, as to what works best for business. As NextMark's Director of Business Development, I've found LinkedIn and YouTube to produce the best marketing results.